The India office market recorded strong momentum during Q3 CY’23. Demand for Grade A office spaces increased across major cities. Office demand also grew by 29% compared to the previous quarter. Strong business confidence supported leasing activity during the quarter. The latest India Office Report Q3 CY’23 from CRE Matrix highlighted healthy growth across India’s office markets.
Bengaluru Continues to Lead Office Demand
Bengaluru remained the strongest office market in India during Q3 CY’23. The city recorded the highest office demand among major office markets. Technology companies continued driving leasing activity across Bengaluru. Google leased 458,063 sqft at Primeco Union City during the quarter. Bengaluru also maintained a low vacancy level of 8.3%.
Delhi-NCR Records Strong Leasing Activity
Delhi-NCR recorded healthy office demand during Q3 CY’23 across key business hubs. Commercial and professional services firms remained active during the quarter. BFSI companies also contributed strongly to leasing activity across the region. Honasa Consumer leased 71,379 sqft at Capital Cyberscape during Q3 CY’23. Vacancy levels also declined due to stronger office demand.
MMR Maintains Premium Office Market Position
MMR continued attracting strong office demand during Q3 CY’23. BFSI companies remained the largest occupiers across the region. Teleperformance leased 211,377 sqft at Mindspace Teleperformance Tower during the quarter. UpGrad also leased 121,166 sqft at Sunteck BKC51 in MMR. Premium office rentals remained strong across major office districts.
Hyderabad and Pune Continue to Grow
Hyderabad recorded strong office demand during Q3 CY’23 across major office corridors. Google leased 679,511 sqft at Salarpuria Sattva Knowledge Capital during the quarter. Goldman Sachs also completed a major office transaction in Hyderabad. Pune also witnessed healthy office leasing activity during the quarter. Panasonic Avionics India leased 123,122 sqft in Pune during Q3 CY’23.
India Office Market Outlook Remains Positive
India office market continues showing strong long-term growth potential. Demand for Grade A office spaces remains healthy across major cities. Large occupiers continue expanding operations across India’s office markets. Premium office developments also consistently attract strong tenant demand. The office market outlook for 2024 remains positive across major regions.
Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!
Media Mention
- Business Standard: Office space demand may fall 18-22% this CY: Credai-CRE Matrix
